Ghana’s state-owned enterprises return to profit with GH¢19.8 billion gain after four years of losses

Ghana’s State-Owned Enterprises (SOEs) have recorded a major financial turnaround, moving from a combined net loss of GH¢2.25 billion in 2024 to a net profit after tax of GH¢19.80 billion in 2025, according to the State Interests and Governance Authority’s (SIGA) latest assessment of state-owned entities.

The result brings an end to four consecutive years in which the SOE sector recorded combined net losses and marks one of the strongest improvements in the financial performance of Ghana’s state-owned companies in recent years.

The figures are contained in SIGA’s 2025 State Ownership Report, which was released in August 2026 and provides a detailed assessment of the financial and operational performance of state-owned enterprises, joint venture companies and other state entities.

Read the 2025 State Ownership Report from SIGA

The report examined 162 of the 175 approved specified entities. These included 53 State-Owned Enterprises, 36 Joint Venture Companies and 73 Other State Entities. The assessment therefore provides a broader picture of how companies and institutions in which the state has an interest performed during 2025.

SOE revenue climbed sharply

One of the clearest signs of the improvement was the increase in revenue generated by Ghana’s State-Owned Enterprises.

According to SIGA, total SOE revenue rose from GH¢137.64 billion in 2024 to GH¢176.43 billion in 2025. That represents an increase of 28.12 per cent in just one year.

The increase is important because state-owned companies play a major role in sectors that directly affect the Ghanaian economy, including energy, transport, agriculture, mining, manufacturing and infrastructure.

When these companies perform better, the potential benefits go beyond their individual balance sheets. Stronger state enterprises can contribute to employment, tax revenue, dividends, public services and the government’s wider economic objectives.

However, the figures should not be interpreted as meaning that every state-owned company became profitable in 2025. The overall result was driven by improvements across the sector, while some major entities continued to record serious financial difficulties.

That distinction is important because the combined performance of SOEs can improve significantly even when individual companies remain under pressure.

Profit before interest and tax also improved

The improvement was not limited to the final profit figure.

SIGA reported that profit before interest and tax increased to GH¢25.49 billion in 2025. The figure represents a further improvement from the GH¢502 million loss recorded in 2023 and the GH¢5.80 billion profit recorded in 2024.

This suggests that the sector’s operating performance improved considerably during the period.

The figures also show how dramatic the change has been when compared with the losses recorded in earlier years. In 2024, the SOE sector as a whole was still reporting a GH¢2.25 billion net loss after tax. One year later, the sector had moved into a GH¢19.80 billion profit position.

That is a turnaround of more than GH¢22 billion between the two reported annual results.

Still, the improvement needs to be considered alongside the factors that influenced the results, including exchange-rate movements, financing costs and the performance of specific sectors.

Agriculture, manufacturing and infrastructure lead revenue growth

SIGA’s report points to particularly strong revenue growth in three areas: agriculture, manufacturing and infrastructure.

Revenue in the agricultural subsector increased by 203.71 per cent in 2025, while manufacturing revenue grew by 114.74 per cent. Infrastructure also recorded a substantial increase of 92.24 per cent.

The figures are significant because these sectors are closely connected to Ghana’s long-term development ambitions.

Agriculture remains an important source of employment and income, especially outside the major urban centres. Manufacturing is important for adding value to Ghana’s raw materials and creating jobs, while infrastructure supports economic activity by providing the systems needed for businesses and households to operate.

The sharp rise in agricultural revenue is particularly notable because Ghana has spent years trying to increase the contribution of agriculture and agro-processing to economic growth.

However, higher revenue does not automatically mean that every farmer, worker or household immediately becomes better off. Revenue is only one part of the picture, and the quality of spending, profitability, efficiency and the distribution of economic benefits also matter.

The stronger cedi played a role

SIGA also identified improvements in foreign exchange performance as one of the factors supporting the better results.

The SOEs recorded net foreign exchange earnings of GH¢11.72 billion in 2025, compared with a foreign exchange loss of GH¢12.01 billion in 2024.

This represents a major swing in the financial position of the sector.

The performance occurred during a period when the Ghana cedi recorded significant gains against major international currencies compared with the previous year. For state-owned entities that have foreign currency obligations or conduct transactions involving international currencies, exchange-rate movements can have a major impact on their financial statements.

When the cedi strengthens, the local-currency value of certain foreign-currency obligations can fall, helping to reduce some financial pressures.

SIGA’s report therefore makes it important to look beyond the headline GH¢19.80 billion profit and examine the economic conditions that helped state-owned companies achieve the result.

Finance costs fell by 42.49 per cent

Another major factor was the reduction in finance costs.

According to the report, finance costs across the SOE sector fell by 42.49 per cent in 2025.

Lower financing costs can make a significant difference to companies carrying substantial debt because less money is required to service loans and other financial obligations.

This can leave more resources available for operations, investment and other business activities.

The broader economic environment also became more supportive during the year. SIGA reported that Ghana’s real gross domestic product grew by six per cent in 2025, while the Monetary Policy Rate declined from 27 per cent to 18 per cent. The Ghana Reference Rate also fell from 29.31 per cent to 15.9 per cent, while the average lending rate dropped from 30.25 per cent to 20.4 per cent by December 2025.

These changes matter because the cost of borrowing has a direct impact on companies that depend on credit to finance their operations.

Ten SOEs maintained profitability

Although the sector’s overall performance improved, SIGA’s report also identified companies that have demonstrated more consistent financial strength.

Ten SOEs maintained profitability throughout the five-year period covered by the assessment.

They included the Ghana Ports and Harbours Authority, Bui Power Authority, Ghana National Gas Company, BOST Energies Company, Minerals Income Investment Fund and TDC Company Limited.

The performance of such entities provides an important lesson for the wider state-owned sector because sustained profitability is more meaningful than a single year of strong results.

A company that repeatedly generates profits is generally in a stronger position to invest, maintain its assets, support its workforce and contribute to government revenue.

The challenge for policymakers will therefore be to determine which management, operational and financial practices are helping stronger entities perform well and whether those lessons can be applied elsewhere.

Not every state-owned company is doing well

The positive headline figures should not hide the financial problems that remain within some of Ghana’s state-owned enterprises.

SIGA identified five SOEs that recorded losses in every year from 2021 to 2025. They are the Electricity Company of Ghana (ECG), Ghana Cylinder Manufacturing Company Limited, GNPA Limited, Graphic Communications Group Company and Ghana Digital Centres Limited.

This is one of the most important findings in the report because it shows that the sector’s turnaround is uneven.

A GH¢19.80 billion combined profit may suggest that the financial problems facing state-owned companies have been solved, but the persistent losses recorded by some entities show that significant structural challenges remain.

ECG, in particular, continues to represent a major financial exposure.

According to SIGA, total liabilities across the SOE sector stood at GH¢281.99 billion in 2025, while ECG alone accounted for GH¢82.31 billion of that amount.

That means ECG accounted for a substantial share of the liabilities carried by Ghana’s state-owned enterprises.

The figure puts the company’s financial position firmly among the issues policymakers will need to address if the broader improvement in SOE performance is to continue.

Total SOE assets declined

Despite the improvement in profits and revenue, total assets of Ghana’s SOEs fell by 5.86 per cent to GH¢407.84 billion in 2025.

SIGA linked much of the decline to the performance of ECG, the Volta River Authority and the Ghana Cocoa Board.

A fall in total assets does not automatically mean that a company or sector is becoming weaker. Assets can change because of depreciation, accounting adjustments, disposals, revaluations and other factors.

However, it is still an important figure to monitor because state-owned enterprises control assets that ultimately belong to the people of Ghana.

The management of those assets is therefore not simply a business issue. It is also a public accountability issue.

Government dividends remain a concern

Another area that deserves attention is the amount of money flowing from profitable state-owned companies into government coffers.

Despite the improved overall financial performance, dividend payments from SOEs to government declined by 29.36 per cent in 2025.

Only Ghana Reinsurance Company Limited and TDC Company Limited paid dividends, contributing a combined GH¢16 million.

This creates an important question for Ghana’s economic managers.

If state-owned companies are generating large profits, how much of that money is being retained by the companies for investment and how much is being returned to the state as dividends?

Retaining profits can be useful when a company needs to expand, replace old equipment, improve infrastructure or strengthen its balance sheet. At the same time, government expects state-owned businesses to contribute to public finances where appropriate.

The balance between reinvestment and dividend payments will therefore remain an important part of the debate over state-owned enterprise reform.

Joint venture companies also performed strongly

The improvement was not limited to traditional SOEs.

Ghana’s Joint Venture Companies also recorded stronger results during 2025.

According to SIGA, net profit excluding minority interest among JVCs increased by 36.55 per cent, moving from GH¢2.29 billion in 2024 to GH¢3.14 billion in 2025.

Their total assets also increased by 25.99 per cent to GH¢96.69 billion.

More importantly for government revenue, joint venture companies contributed GH¢1.19 billion in dividends to the state.

That represented 97.12 per cent of all dividends received across the state-owned portfolio during the year.

The result suggests that joint ventures may become an increasingly important source of income for government, particularly if the state can strengthen its oversight of these companies and ensure that profitable partnerships deliver sustainable returns.

Other state entities recorded a large deficit

While SOEs and JVCs recorded stronger results, another category of state entities experienced a much more difficult year.

SIGA reported that Other State Entities recorded a combined net deficit of GH¢10.48 billion in 2025, compared with a deficit of GH¢2.18 billion in 2024.

Their total assets increased by 60.15 per cent to GH¢310.62 billion, but liabilities also increased by 41.83 per cent to GH¢323.17 billion.

The accumulated fund position deteriorated from a positive GH¢15.47 billion to a negative GH¢41.14 billion.

SIGA attributed a significant part of the reversal to the Bank of Ghana’s reported GH¢93 billion negative equity position.

This is another reason the headline SOE profit should not be treated as a complete picture of the financial health of all public entities.

What the results mean for Ghana

The return of SOEs to profitability is undoubtedly significant, but the bigger question is whether the improvement can be sustained.

Ghana has spent years dealing with financial problems in several state-owned companies, with some entities requiring government support while others have struggled with debt, weak revenue collection, operational inefficiencies and high financing costs.

The new SIGA report provides evidence that the situation improved substantially in 2025.

However, one strong year cannot by itself prove that the underlying problems have been permanently solved.

The real test will come in subsequent years.

If state-owned companies continue to increase revenue, control costs, reduce unnecessary borrowing, improve governance and maintain profitability, the 2025 results could represent the beginning of a genuine transformation.

If the performance falls sharply in the following years, however, the GH¢19.80 billion profit could turn out to have been influenced heavily by temporary economic conditions.

That is why continued publication of detailed performance reports is important.

A bigger issue is how taxpayers benefit

For ordinary Ghanaians, the most important question is not simply whether SOEs made money.

The bigger question is what those results mean for the public.

State-owned companies are ultimately connected to public resources. Their assets, obligations and financial outcomes can affect government finances and, indirectly, taxpayers.

When state enterprises perform poorly and require financial support, the cost can eventually fall on the public purse.

When they perform well, however, the benefits should ideally be visible through stronger public finances, improved services, investment and dividends.

This makes the quality of corporate governance particularly important.

Profitable companies can still fail to deliver public value if their profits are poorly managed, if investments are wasteful or if governance weaknesses allow resources to be lost.

SIGA says the report should support reform

SIGA Director-General Professor Michael Kpessa-Whyte described the 2025 report as significant because it captures the first year of President John Dramani Mahama’s second administration and provides a basis for discussions about the future of Ghana’s state-owned enterprises and other state entities.

The report is therefore more than a collection of financial figures.

It provides policymakers, Parliament, investors, civil society groups and the public with information that can be used to assess whether state-owned companies are delivering value.

SIGA’s broader mandate includes monitoring state interests and promoting effective governance of entities in which the government has a stake. Its State Ownership Reports are designed to provide a regular assessment of the financial and operational performance of these institutions.

The road ahead

Ghana’s state-owned enterprises have now produced an impressive headline result, moving from a GH¢2.25 billion loss in 2024 to a GH¢19.80 billion profit in 2025 while increasing revenue by more than 28 per cent.

The improvement is encouraging, particularly after four consecutive years of combined losses.

But the same report shows why Ghana should not become complacent.

Five SOEs remained loss-making throughout the five-year period, ECG alone accounted for GH¢82.31 billion in liabilities, government dividend receipts from SOEs declined and the wider category of Other State Entities recorded a GH¢10.48 billion deficit.

The strongest conclusion from the report is therefore not simply that Ghana’s state-owned companies are now profitable.

It is that some important parts of the state-owned sector are showing signs of recovery, while significant financial risks remain elsewhere.

For Ghana, the challenge now is to turn the improvement into a lasting trend.

That will require stronger corporate governance, careful financial management, better operational efficiency and continuous monitoring of companies that remain dependent on public resources.

The 2025 results give policymakers something positive to build on, but the next few years will determine whether the GH¢19.80 billion turnaround becomes a lasting transformation of Ghana’s state-owned sector or simply one strong chapter in a much longer story of reform.